Bitcoin (BTC) and the stock market may have had a correlation back in March when the global economy melted down due to the Coronavirus Pandemic, but now Bitcoin (BTC) is pulling way ahead of stocks as can be seen in the below chart of Bitcoin (BTC) versus the S&P 500 since the beginning of 2020.
Chart courtesy of TradingView.com. Bitcoin is shown with green and red candle sticks, with the S&P 500 being a red line.
This chart doesn’t show exact values, but rather the relative price movements of Bitcoin (BTC) and the S&P 500.
In the beginning of this year, from New Year’s Day through the middle of February, Bitcoin (BTC) rose from $7,000 to $10,500. Simultaneously the S&P 500 rose from 3,230 points to 3,400 points. Even though this was the all-time high for the S&P 500, Bitcoin (BTC) was far outperforming the S&P 500.
From the latter half of February through March 12, Bitcoin (BTC) crashed from $10,500 to $3,850, with the S&P 500 bottoming out near 2,240 about 10 days later. Essentially, the stock and crypto markets showed a strong correlation at that point, as all global markets fell due to the Coronavirus.
Now that correlation between stocks and Bitcoin (BTC) is over, with the S&P 500 being stagnant since mid-April, Bitcoin (BTC) has risen from $6,900 to $10,000 during the same period of time.
Thus, Bitcoin (BTC) is no longer following the relatively stagnant stock market and is moving in a definitively bullish direction. Bitcoin (BTC) is once again proving itself to be the most lucrative asset class, and it appears this trend will continue throughout 2020.